Last year's positive rental picture was mirrored with increases in sales of property. Record levels were reached at both Kiawah and Seabrook, while the Isle of Palms dropped. However, that drop in sales at the Isle of Palms is not due to any inherent weakness in the market, but rather reduced inventory.

Total sales for the Charleston beach market rose for the second year in a row with increases in volume and unit sales at Kiawah and Seabrook and a continued decrease in volume and unit sales at Isle of Palms. Total dollar volume of sales for 1996 was above $217 million for the three markets, an increase of more than 5% above last year's cumulative volume of $206 million.

The volume increase was on an increased number of sales from a total of 1002 units transferred in 1995 to 1032 units in 1996 indicating increased demand put upside pressure on prices throughout the three markets. Kiawah's increased volume coincided with a 10% increase in unit sales from 394 in 1995 to 435 in 1996. Seabrook Island's unit sales were nearly as dramatic as its volume moving 23% from 217 in 1995 to 266 in 1996. Unit sales at Isle of Palms dropped for the second year in a row from 391 in 1995 to 330 in 1996.

Sales of homes at Isle of Palms caused the biggest fall off in unit and dollar volume in 1996. For 1996, 119 homes were sold for a total volume of $32.6 million compared with 151 units in 1995 for a total volume of $41 million. Sales of lots at Isle of Palms were up slightly over 1995 softening the effect of the overall market slowdown.

Just as we said last year, the maturity of the Isle of Palms market and decrease of supply of vacant lots should continue to put upward pressure on the remaining inventory.